Non-Optical Mobile Electronic Transaction System, Device and Method Therefor

ABSTRACT

Disclosed herein is a non-optical system, device and method for conducting electronic transactions utilizing a wireless communications device adapted to receive a transaction program and data. The device comprises memory storage for storing a transaction program, a microprocessor and a transponder chip. The microprocessor executes instructions contained within the transaction program to program a code segment on the transponder chip. The transponder chip transmits a signal representative of value upon detection of an activation signal. As disclosed herein, value is selected from the group consisting an identifier of a purchased good, an identifier of a purchased service, a coupon, a discount, a prepaid transaction, an electronic negotiable instrument, a sum from a credit account, and a sum from a debit account. The signal representative of value is readable by a seamier to complete a transaction. The scanner may be adapted to access a provider server for storing and retrieving user information. The scanner may be a peripheral or integrated device used to activate the transponder chip to transmit value(s), receive and translate value(s) in a non-optical method.

CROSS REFERENCE TO RELATED APPLICATIONS

This application is a completion application of co-pending U.S.Provisional Application No. 60/714,985, filed Sep. 8, 2005, for“Non-Optical Mobile Electronic Transaction System, Device and MethodTherefor,” the entire disclosure of which is hereby incorporated byreference.

FIELD OF THE INVENTION

The present invention relates to a system, device and method forconducting wireless electronic transactions, and more specifically, thepresent invention relates to electronic transactions utilizing anon-optical wireless communications device.

PRIOR ART

Electronic transactions conducted over the Internet, also known aselectronic commerce or e-commerce, have enabled individuals to purchaseproducts without leaving their homes. Typically, an e-commerce shopperwill access a web site, scroll through goods, some of which may not beavailable, and then “check out”. The check out process involvesproviding payment information and arranging for shipping. Manye-commerce retailers charge a significant fee above the actual shippingcost for shipping. Additionally, the shopper has to wait for the goodsthey purchased to be delivered.

Payment is typically arranged by providing a credit card number online.A significant number of e-commerce shopper's have concerns aboutproviding credit card information over the Internet. Although theliability for credit card holders is limited to $50 under the FairCredit Billing Act if an unauthorized charge is timely reported, theconsumer ultimately pays for the fraud via interest rates and otherfees.

New payment systems have been developed which respond in part to thesecurity concerns about providing credit card information to thirdparties by facilitating the payment portion of a transaction. However,these new payment systems do not respond to concerns where an item isordered and the e-commerce retailer does not deliver the selected item.The payment system will still charge the shopper's account as soon asthe item is ordered. Months may pass before the situation is resolved,ultimately resulting in a dispute with the credit card company.

The proliferation of Internet retail services and the concomitantadvertising has enabled our society to become ever more paperless.E-commerce web sites employ many advertising methods to that drawInternet users to their web sites. However, coupons are distributed onpaper rather than provided electronically.

Beyond the wired Internet, wireless e-commerce has taken the benefits ofthe Internet and added mobility. Therefore, it is advantageous tocombine the benefits of wireless e-commerce with the mobility ofwireless devices such as cellular phones and PDAs to provide immediatecompletion of a transaction.

One such system that combines wireless mobility and retail commerce isdescribed in U.S. Pat. No. 6,577,861. The '861 patent discloses awireless telephone connected with a bar code scanner as a substitute fora personal shopping terminal. The '861 patent is an advance in wirelesse-commerce, however the system does have shortcomings. The '861 patentdoes not provide for selecting an item while the shopper is not in thestore. Furthermore, the '861 system is limited to purchasing items thathave an associated barcode. Lastly, the '861 system does not provide ameans for making the transaction more paperless, nor is it applicable toservices such as air travel, hotel or rental car accommodations.

Optical reading devices, such as barcode scanners, require the scannerto be able to “read” indicia, such as a bar code, on an object. Thescanner may not be able to read the indicia in cases where the indiciahas been damaged. Additionally, the scanner must be able to illuminatethe indicia, which in some cases may not be practical where the indiciais in an inaccessible location relative to the scanner. Furthermore, asthe technology is optical, the scanner or the indicia may becomecontaminated.

Thus, it is desirable to provide a system, device and method forelectronic transactions using a non-optical wireless device forpaperless redemption of a coupon, a prepaid transaction, an electronicnegotiable instrument, a sum from a credit account, and a sum from adebit account.

SUMMARY OF THE INVENTION

A system for conducting electronic transactions, comprises a wirelesscommunication device having a programmable transponder chip, memorystorage, a display screen and a microprocessor, where the device isadapted to receive a transaction program for programming the transponderchip.

A code segment is stored in the transponder chip, the code segmentcontains instructions executable by the transponder chip to produce asignal representative of value. The signal representative of value isselected from the group consisting of an identifier of a purchased good,an identifier of a purchased service, a coupon, a discount, a prepaidtransaction, an electronic negotiable instrument, a sum from a creditaccount, and a sum from a debit account.

A merchant scanner has a transceiver and an antenna, where thetransceiver is operatively coupled to the antenna for transmitting anactivation signal to be received by the transponder chip. When thetransponder chip receives the activation signal from the transceiver,the transponder chip transmits a signal representative of value. Thetransceiver receives the signal representative of value from thetransponder chip.

The signal produced by the transponder chip may also represent useridentification information. The system may include a provider serveraccessible by the merchant scanner for storing and retrieving useraccount information. The provider server may provide the code segment tothe transponder chip. The wireless communication device may furthercomprise an antenna for communication with said provider server. Thetransponder chip may be an RFID chip.

A wireless communication device for conducting electronic transactions,comprises a programmable transponder chip and memory storage adapted toreceive a transaction program for programming the transponder chip, adisplay screen and a microprocessor. A code segment is stored in thetransponder chip, where the code segment contains instructionsexecutable by said transponder chip to produce a signal representativeof value, where value is selected from the group consisting of anidentifier of a purchased good, an identifier of a purchased service, acoupon, a discount, a prepaid transaction, an electronic negotiableinstrument, a sum from a credit account, and a sum from a debit account.The signal representative of value is detectable by a merchant scanner.

A method of conducting electronic transactions comprises the steps ofproviding a wireless communication device having a programmabletransponder chip, memory storage, a display screen and a microprocessor,the device being adapted to receive a transaction program forprogramming the transponder chip. A scanner generates an activationsignal. The device transmits a signal representative of value, wherevalue is selected from the group consisting of an identifier of apurchased good, an identifier of a purchased service, a coupon, adiscount, a prepaid transaction, an electronic negotiable instrument, asum from a credit account, and a sum from a debit account. The scannerreceives the signal representative of value from the transponder chip.

The program or code segment may be downloaded from a remote server. Afurther step may include entering a password before the step oftransmitting the signal representative of value.

Further objects, features and advantages of the present invention willbecome apparent to those skilled in the art from analysis of thefollowing written description, the accompanying drawings and theappended claims.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a schematic illustration of a network for providing softwareand data to a wireless communications device according to the principlesof the present invention; and

FIG. 2 is a block diagram of a system for conducting electronictransactions according to the principles of the present invention.

DESCRIPTION OF THE PREFERRED EMBODIMENT

A system provider enables a user to engage in electronic transactions byemploying a wireless communications device with a programmabletransponder chip. Through a transaction program loaded into the memoryof a wireless device, the programmable transponder chip is programmed toproduce a signal representative of value.

With initial reference to FIG. 1, a schematic illustration of a network8 for providing software and data to a wireless communications device 20according to the principles of the present invention is shown. Thenetwork 8 comprises a provider server 70 in communication with a network80, such as the Internet or a wireless network, via a line 82. Thenetwork 80 is in communication with a cellular network 90 via a line 84.The provider server 70 is accessible by a terminal 60, such as apersonal computer or other terminal, via a line 86, a PBX, or any datatransmission system known in the art. A cradle 40 is coupled to theterminal 60 by a cable 42. The provider server 70 has proprietarysoftware that transmits data and software to wireless communicationsdevice 20. The proprietary software transmits a transaction program tothe wireless device 20, as well as manages and modifies the transactionprogram.

In the present embodiment, the device 20 is a cellular telephone havingan antenna 28, display screen 24, key pad 25, memory card reader 27 andan I/O port 29. Data and software may be downloaded by wirelesscommunications, such as radio signals, laser or infrared, wirecommunications, such as through the IO port 29, or from external media,such as a memory card through card reader 27. The IO port 29 enables thedevice 20 to couple to the cradle 40 or any other means known in the artto send and receive data to the terminal 60. The device 20 may send andreceive data and software via the cellular network 90 or any wirelessnetwork, instead of, or in addition to, data and software sent throughIO port 29. It should be noted however, that any communicationtechnology known the art including infrared, laser, or radio, such asBluetooth®, may be employed to transmit and receive data or softwarewithin the network 8.

Although device 20 in the present embodiment is a cellular telephone, itshould be apparent to those skilled in the art that any wireless devicemay be substituted for a cellular telephone including, but not limitedto, a PDA (personal digital assistant), a handheld computer, or anydevice that comprises memory storage, microprocessor and may be adaptedto receive a transponder chip.

Referring now also to FIG. 2, a block diagram of a system 10 forconducting electronic transactions according to the principles of thepresent invention is shown. The system 10 includes wirelesscommunication device 20 and a merchant scanner 50. The device 20 has aprogrammable transponder chip 21, memory storage 22 and a microprocessor26. The provider server 70 has proprietary software that sends atransaction program 30 to wireless communications device 20. Thetransaction program 30 is stored in the memory storage 22 of device 20.The program 30 contains instructions executable by the microprocessor 26to enable the device 20 to program the transponder chip 21. Thetransaction program 30 programs a code segment in the programmabletransponder chip 21. The code segment contains instructions executableby the transponder chip 21 to produce a signal representative of valuewhen the chip 21 receives an activation signal. According to the presentinvention, value is selected from an identifier of a purchased good, anidentifier of a purchased service, a coupon, a discount, a prepaidtransaction, an electronic negotiable instrument, a sum from a creditaccount, and a sum from a debit account.

The wireless communications device 20 has a programmable transponderchip 21. The transponder chip 21 may be programmed a plurality of times.In the preferred embodiment, the transponder chip is an RFID chip,however any suitable technology known in the art may be substituted forRFID.

The merchant scanner 50 comprises a transceiver 51 operatively coupledto an antenna 55. The transceiver 51 has a transmitter 52 for generatingan activation signal and a receiver 54 for receiving a signalrepresentative of value from the transponder chip 21. The merchantscanner 50 may communicate information provided by the device 20 withthe provider server 70.

In operation, the merchant scanner 50 transmits an activation signal tobe received by the transponder chip 21. The code segment on thetransponder chip 21 causes the chip 21 to transmit a signalrepresentative of value upon detection of the activation signal. Thescanner 50 receives the signal representative of value from saidtransponder chip 21. The signal representative of value may also containuser identification information.

The provider server 70 comprises a commerce program 72 and database 74.The provider database 74 may include information such as a username,password, bank account information, credit card information, selectedcoupons, a prepaid transaction, an electronic negotiable instrument, asum from a credit account and a sum from a debit account. The commerceprogram 72 provides instructions to enable a user to conduct electronictransactions. Additionally, a user may use the wireless device 20 tobrowse and select goods, services and coupons. Furthermore, a user mayemploy the program 30 to locate a participating retailer or serviceprovider.

A user selects a transaction by choosing a good, service, discount orcoupon. Once the transaction is selected, the user pays for the good orservice by causing the commerce program 72 to debit a credit account,debit a debit account, create an electronic negotiable instrument,create an identifier of a purchased good, or create an identifier of apurchased service. The database 74 records the actions taken by thecommerce program 72. The database 74 may also record a prepaidtransaction, a selected coupon, a discount, as well as any otherpertinent user information, preferences or information indicative ofpurchasing habits.

In one embodiment, a user will use device 20 to select a transactionincluding, but not limited to, a good, a service, a ticket, a coupon, adiscount, a prepaid transaction, an electronic negotiable instrument, asum from a credit account, or a sum from a debit account via thetransaction program 30 stored on device 20. the program 30 willreprogram the chip 21 with a code segment with instructions to transmita signal representative of value for the transaction when an activationsignal activates the chip 21. Alternatively, the commerce program 72 onthe provider server 70 may generate the code segment and transmit thecode segment to the device 20.

When a user is ready to complete a transaction at a participatingretailer, the device 20 may automatically transmit the signalrepresentative of value for the transaction when an activation signalactivates the chip 21 or the user may be prompted for a password. Whenthe device 20 is permitted to transmit the signal representative ofvalue, the merchant scanner 50 will receive the signal and complete thetransaction. In one embodiment, the merchant scanner 50 will redeem thetransaction by voiding the signal or code segment. In an alternativeembodiment, the merchant scanner 50 may be in communication with themerchant server 70 via a network 80, such as the Internet or a wirelessnetwork, via a line 56. The network 80 may also be in communication witha cellular network 90 via a line 58. In an alternate embodiment, thetransaction program 30 will display an indicia on the display screen 24of device 20 indicating the transaction has been successful.

In one mode of operation the wireless communication device 20 is incommunication with a device adapted to communicate with a network, suchas a personal computer connected to the Internet. Any means known in theart for communication between a wireless device and personal computermay be employed, including, but not limited to, a cradle or cable. Thedata necessary to generate the code segment or the code segment itselfmay be downloaded from the provider server 70 to the wireless device 20.Furthermore, the browsing and selection of a transaction may becompleted through a personal computer and then the necessary data orcode segment may be downloaded to the device 20.

The foregoing discussion discloses and describes the preferred structureand control system for the present invention. However, one skilled inthe art will readily recognize from such discussion, and from theaccompanying drawings and claims, that various changes, modificationsand variations can be made therein without departing from the truespirit and fair scope of the invention as defined in the followingclaims.

1. A non-optical mobile electronic transaction system, comprising: awireless communication device, the device including: (a) a transponderchip; (b) memory storage means; (c) a display screen; (d) amicroprocessor; and (e) means for receiving a transaction program forprogramming the transponder.
 2. The system of claim 1 wherein thetransponder chip comprises a code segment containing instructionsexecutable by the chip to produce a signal representative of value. 3.The system of claim 2 which further comprises: a scanner having atransceiver and an antenna, the transceiver being operatively connectedto the antenna for transmitting an activation signal to the transponder,the transportation chip transmitting a signal representative of value tothe transceiver responsive to the activation signal.
 4. The system ofclaim 3 which further comprises: a provider server accessible by thescanner, the server including means for providing the code segment tothe transceiver.
 5. The system of claim 4 which further comprises: anantenna, operatively connected to the wireless communication device forreceiving signals from the server.
 6. The system of claim I wherein thetransponder chip is an RFID chip.
 7. The system of claim 3 wherein thesignal representative of value is selected from the group consisting ofan identifier of a purchased good, and identifier of a purchasedservice, a coupon, a discount, a pre-paid transaction, an electronicnegotiable instrument, a sum from a credit account and a sum from adebit account.
 8. The system of claim 7 wherein the scanner is amerchant scanner.
 9. A method for conducting an electronic transactioncomprising: (a) providing a wireless communicating device, the deviceincluding: (1) a transponder chip having a code segment containinginstructions executable by the chip to produce a signal representativeof value; (2) memory storage means; (3) a display screen; (4) amicroprocessor; and (5) means for receiving a transaction program; (b)providing a merchant scanner, the scanner including a transceiver and anantenna connected thereto; (c) generating an activation signal from thescanner; (d) receiving the activation signal by the device; and (e)transmitting a signal representative of value to the device, the signalrepresentative of value being generated by the transponder chip.
 10. Themethod of claim 9 which further comprises: (a) providing a remoteserver; (b) transmitting the code segment from the server to thetransponder chip; and (c) downloading the code segment.
 11. The methodof claim 9 which further comprises: entering a password beforetransmitting the signal representative of value.
 12. The method of claim9 wherein the signal representative of value is selected from the groupconsisting of an identifier of a purchased good, and identifier of apurchased service, a coupon, a discount, a pre-paid transaction, anelectronic negotiable instrument, a sum from a credit account and a sumfrom a debit account.